Fort Worth Business Press, May 12, 2014 Vol. 26, No. 18 | Page 8

8 news May 12 - 18, 2014 | fwbusinesspress.com Pinnacle Bank deal moves Lancaster project forward Scott Nishimura n [email protected] Rendering of the Pinnacle Bank Place north side elevation. P innacle Bank is paying $1.38 million for one-third of the ground floor of the Lancaster mixeduse project on the south end of downtown. It will use the space for a retail branch and back   office operations. Pinnacle is acquiring 8,500 square feet, with plans to immediately use about 5,000 square feet of it, Jay Chapa, Fort Worth’s housing and economic development director, told Mayor Betsy Price and members of the City Council during their Fort Worth Local Development Corp. meeting May 6. “They wanted the ability to grow,” Chapa said in an interview afterward. Pinnacle Bank had not yet responded to a Business Press request for an interview by press time. Pinnacle Bank has agreed to provide $16.5 million in financing for the project. Its purchase price of a third of the retail floor is $162.50 per square foot. The bank also agreed to lease 30 parking spaces in a garage to be built as part of the project and to prepay a 50-year lease for the parking. The Local Development Corp., which owns the project, has agreed to rename the building Pinnacle Bank Place or Pinnacle Place, depending on whether the Downtown Design Review Board allows signage with the bank name, Chapa said. Rendering of south side elevation. Financing Terms Lender: Pinnacle Bank Borrower: Lancaster Corridor Redevelopment, LLC Loan amount: up to $16,500,000 for the mixed-use development Interest rate: • During construction (18 months): Fixed at 3.75 percent • Years 2.5 through 5: Fixed at 4.10 percent • Years 6 through 10: Fixed at 5.25 percent Blended rate of 4.6 percent Approximately 2 percent lower than other loan option Term: 10 years Amortization: 25 years • 1 percent origination fee • $10,000 commitment fee payable toward origination fee at closing The council, serving as the Local Development Board, approved the Pinnacle financing and terms during its May 6 meeting. “We’re going with Pinnacle Bank Place unless we’re told the signage is not going to work,” Chapa said. The project is in the 200 block of West Lancaster Avenue on the north side of the street between Jennings and Throckmorton streets. Chapa said two other prospective tenants have expressed interest in space on the ground floor of the planned project, including one who he said is ready to sign a lease. “We’re not sure it’s the best [tenant] for it,” Chapa said. Construction is expected to begin at the end of Au- Rendering of parking garage. gust or early September, Chapa said. The total project cost is estimated at $28 million. It will include 130 apartments covering 160,000 square feet, 24,000 square feet of